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Business Insider
6 days ago
- Business
- Business Insider
UAL, AAL: Here's Why Airline Stocks are Flying Higher Today
Airline stocks United Airlines (UAL) and American Airlines (AAL) soared 14.3% and 12.7%, respectively, on Thursday. Further, Alaska Air (ALK) stock rose 9% and Southwest Airlines (LUV) was up 8%. The upside was due to a bullish earnings report from Delta Air Lines (DAL) that lifted sentiment across the sector. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Delta's second-quarter results beat estimates, fueled by a 26% jump in passenger revenue and strong performance in its premium and loyalty segments. Also, Delta reinstated its full-year guidance, projecting $5.25 to $6.25 in earnings per share and up to $4 billion in free cash flow, signaling confidence in sustained travel demand. This upbeat earnings report eased investor concerns about inflation and tariff-related headwinds. Also, it raised hopes that UAL and AAL will benefit from similar tailwinds when they report earnings. Despite DAL's strong results, the Airline sector is in a tough spot. Passenger traffic has rebounded to pre-pandemic levels, but rising fuel costs, weak U.S. leisure demand, and economic worries continue to hurt profits. Barclays Analyst Ups AAL Stock's Price Target Earlier today, Barclays analyst Brandon Oglenski raised the price target for American Airlines stock to $12 from $11. In his preview of the Airline sector's Q2 earnings, Oglenski noted that rising jet fuel costs and soft demand for U.S. leisure travel could lead to muted earnings outlooks across the sector. However, he believes that if airlines such as AAL decide to cut capacity in Q4, investors might see that as a smart move to protect profits. Overall, he sees AAL stock as fairly valued and hence maintains a Hold rating. Which Airline Stock Is a Good Buy? According to the TipRanks' Stock Comparison Tool, UAL, DAL, and ALK score Wall Street's 'Strong Buy' consensus rating, with ALK stock offering the highest upside potential among them.
Yahoo
09-07-2025
- Business
- Yahoo
Alaska Air Group (ALK) Expected to Beat Earnings Estimates: What to Know Ahead of Q2 Release
The market expects Alaska Air Group (ALK) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This airline is expected to post quarterly earnings of $1.57 per share in its upcoming report, which represents a year-over-year change of -38.4%. Revenues are expected to be $3.66 billion, up 26.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.51% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Alaska Air, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.01%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Alaska Air will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Alaska Air would post a loss of$0.72 per share when it actually produced a loss of -$0.77, delivering a surprise of -6.94%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Alaska Air appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-07-2025
- Business
- Yahoo
Alaska Air Group, Inc. (ALK) Reports Cybersecurity Incident at One of Its Subsidiaries
Alaska Air Group, Inc. (NYSE:) is one of the . Bridgewater Associates holds over $33 million worth of shares of ALK, which represents 0.16% of its portfolio. emiel-molenaar-JOrUKpuMOeU-unsplash On June 23, 2025, Alaska Air Group, Inc. (NYSE:ALK) reported a cybersecurity incident at its subsidiary Hawaiian Airlines, affecting parts of its IT systems. Despite the concerns raised by the breach, the airline confirmed that its flights and passenger services will remain unaffected. Meanwhile, the company aims to leverage the expertise of federal authorities to look into the matter. This incident follows Alaska Air Group, Inc.'s (NYSE:ALK) acquisition of Hawaiian Airlines in September 2024 for $1.9 billion. This acquisition has already contributed significantly to the company's Q1 earnings, which exceeded the expectations of the investors. While the incident poses short-term operational risks for the company, analysts remain cautiously optimistic given the uninterrupted flight operations. Based in Washington, U.S., Alaska Air Group, Inc.'s (NYSE:ALK) operates scheduled passenger and cargo services through its mainline carriers, Alaska Airlines and Hawaiian Airlines. It is among the list of cheap stocks to buy. While we acknowledge the potential of ALK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
08-07-2025
- Business
- Yahoo
Alaska Air Group's Q2 Earnings on Track, Future Guidance Crucial, UBS Says
Alaska Air Group's (ALK) Q2 earnings per share are expected to be in line with company guidance as d Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
Alaska Air Group (ALK) Rises Higher Than Market: Key Facts
In the latest close session, Alaska Air Group (ALK) was up +1.6% at $47.73. This move outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%. Shares of the airline have depreciated by 7.36% over the course of the past month, underperforming the Transportation sector's loss of 2.22%, and the S&P 500's gain of 0.5%. Analysts and investors alike will be keeping a close eye on the performance of Alaska Air Group in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.57, indicating a 38.43% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.66 billion, indicating a 26.26% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.65 per share and revenue of $14.21 billion, indicating changes of -25.05% and +21.09%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alaska Air Group. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Alaska Air Group possesses a Zacks Rank of #3 (Hold). With respect to valuation, Alaska Air Group is currently being traded at a Forward P/E ratio of 12.87. This signifies a premium in comparison to the average Forward P/E of 9.05 for its industry. It's also important to note that ALK currently trades at a PEG ratio of 0.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.84. The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
